PRIME MINISTER
TRANSCRIPT OF NEWS CONFERENCE. SEAWORLD NARA RESORT HOTEL,
SURFERS PARADISE 14 JULY 1989
E OE PROOF ONLY
JOURNALIST: The eight backbenchers concerned about interest
rates in Canberra last night, were they wasting their
time? PM: No, people never waste their time meeting.. As I
said when I got off the plane yesterday from the South
Pacific Forum, I never object to people meeting. But the
important thing is that we start in earnest on Monday
with the Budget preparation processes. We will do, as
we've done over six years of government) to go about the
steady business of managing the Australian economy in
a way which is going to produce the best results. You
heard me talking here today about what those results have
been unsurpassed in the history of this country and
better in fundamental respects than is happening elsewhere,
with the creation of jobs and the bringing down of inflation,
a situation now, admittedly, where in the interest of
Australians we have to have temporarily high interest
rates. Because the alternative would mean a disaster.
We will make the decisions which are necessary to protect
the continuing interests of the Australian people. If
some of the backbenchers want to meet and have their ideas
well that's OK. But we will make the decisions which
are necessary to, as I say, protect the interest's of the
Australian people.
JOURNALIST: Will you take their suggestions on board?
PM: We know what they are saying. As I said before.
over the last few weeks, when suggestions are made you
don't ignore suggestions. You look at them and see if
they've got merit and then you make the decisions which
on balance are best for the community. But the fact that
eight backbenchers have met is not going Co change the
course of history.
JOURNALIST: Is it becoming more politically attracti'Je
to artificially soften the impact of high interest rates?
2
PM: We won't be doing anything artificial. If we make
a decision it will be a considered decision which we think
is in the interests of the Australian people, presently
and in the longer term.
JOURNALIST: One bank has reduced its interest rate to
15.5% today. Do you think that interest rates have peaked
PM: I'm not making any comment about the timing of interes9
rate movements because when a Prime Minister does that
it can be counterproductive. All I can say is this, it
really is two things, as I've said consistently and I
repeat them. Interest rates will be kept as high as they
need to be for as long as is necessary to protect the
interests of the Australian economy. Secondly, we will
be making a range of decisions which are consistent with
protecting the interests of the Australian people and
in a way which will enable, at an appropriate time, a
lowering of the interest rate regimen. But that will
not be one day before it's responsible and it won't be
carried on one day longer than is necessary. It's as
simple as that.
JOURNALIST: Are you confident that you'll have the full
support of the Caucus?
PM: Yes, yes. You would notice that even amongst people
who are having their meetings and getting a reasonable
amount of publicity for them, basically they are saying
that they support the fundamental thrust of the Government's
policy, as well they should. Look at what it's produced.
If you produce a policy from ' 83 onwards which turns around
what was the worst recession in 50 years, and your policy
turns that round to a point where you have a rate of 3mployment
growth four times as fast as what you had before, more
than twice as fast as the rest of the world, reduce inflation
and have a reduction in the Budget deficit to a point
now where it is a record surplus, there can't be much
wrong with those policies.
ends